A home warranty costs $56 on average but can range from $47–$82 per month or $564–$984 per year, with the exact price depending on your chosen provider, coverage level, and service fees. Additional factors include the home’s size, location, and the types of appliances or systems covered. To get a clearer picture of what affects home warranty pricing, keep reading to learn more about these factors, ways to keep costs low, and the top home warranty providers offering affordable coverage.
Key Takeaways
- A home warranty costs $56 per month on average or $672 annually, depending on your plan and coverage.
- In our 2025 survey of 2,000 home warranty users nationwide, 58% of respondents ranked coverage as their top priority when selecting a plan, while nearly 25% considered pricing an important but secondary factor.
- We found that AFC Home Warranty offers the lowest overall costs, with monthly premiums ranging from $44–$82, a good choice for homeowners looking for high-value, low-cost coverage.
Did You Know?
- In the last 30 days, more than 2,500 people bought home warranties from the above providers. Liberty Home Guard is our most popular provider, with 55% of buyers choosing to cover their homes with an LHG plan.
Home Warranty Cost Breakdown
The cost of a home warranty consists primarily of your premium, paid either monthly or annually. On average, monthly premiums range from $47–$82, or $564–$984 annually, depending on the level of coverage and provider. More specialized plans, such as appliance-only or systems-only coverage, typically cost less, while comprehensive plans covering both systems and appliances cost more. Additional factors such as home size, location, and the number of items covered can also impact the premium.
In addition to the premium, homeowners pay a service call fee for each technician visit, typically between $75 and $125. Some providers allow flexibility so you can select a lower service fee, which corresponds to a higher premium and vice versa. Homeowners can also customize their plan with coverage add-ons, such as for pools or septic systems, which usually cost between $3 and $30 per month.
You may access special discounts or promotions depending on the provider and contract terms, reducing your overall plan cost. Some providers offer discounted rates for choosing an annual payment option. Our 2025 home warranty survey revealed that nearly 57% of homeowners preferred the annual payment option.
When selecting a home warranty, it’s important to consider these cost factors to find the best coverage for your needs and budget.
Home Warranties With the Lowest Plan Costs
AFC Home Warranty offers the lowest overall costs, based on quotes gathered by our team, with monthly premiums ranging from $44–$82 and annual costs between $481–$904. Elite Home Warranty has the smallest pricing range, with monthly costs between $47–$60 and annual costs from $564–$720, providing more predictable pricing. American Home Shield offers the lowest starting monthly cost at $36, but its annual range of $426–$1,205 is broader than companies such as AFC Home Warranty, meaning overall costs can vary significantly.
| Provider | Average Monthly Cost | Average Annual Cost |
|---|---|---|
| American Home Shield | $36–$100 | $426–$1,205 |
| Choice Home Warranty | $60–$68 | $695–$792 |
| Elite Home Warranty | $47–$60 | $564–$720 |
| First American Home Warranty | $77–$130 | $930–$1,560 |
| AFC Home Warranty | $44–$82 | $481–$904 |
How We Determined Home Warranty Pricing
We collected over 4,000 quotes from 13 companies across all 50 U.S. states to estimate home warranty costs from different providers. Our sample quotes included single-family homes under and over 5,000 square feet in urban and rural areas nationwide. We then averaged the costs for each provider to determine estimated monthly and annual premiums.
Home Warranties With the Lowest Service Fees
Elite Home Warranty offers the lowest service fee at $70, though this increases to $150 for after-hours and weekend visits. Choice Home Warranty has a fixed $100 service fee, providing less flexibility than other providers. American Home Shield and First American Home Warranty offer flexible service fees ranging from $100–$125, offering more options to customize your costs. AFC Home Warranty’s service fees range from $75–$125, with its lowest fee slightly higher than Elite’s but matching the highest rates offered by American Home Shield and First American Home Warranty.
| Provider | Service Fee |
|---|---|
| American Home Shield | $100–$125 |
| Choice Home Warranty | $100 |
| Elite Home Warranty | $70 ($150 for after hours and weekends) |
| First American Home Warranty | $100–$125 |
| AFC Home Warranty | $75–$125 |
Best Home Warranty Companies: Plans and Pricing
When choosing a home warranty, it’s important to factor in both plan costs and service call fees to find the most cost-effective option. Below, we’ve compared the pricing of leading home warranty providers to help you make an informed decision.
| Company | Logo | Our Score | Monthly Cost | Service Call Fee |
|---|---|---|---|---|
American Home ShieldGet Quote |  | $36–$100 | $100–$125 | |
Choice Home WarrantyGet Quote |  | $60–$68 | $100 | |
Elite Home WarrantyGet Quote |  | $45–$60 | $70 ($150 for after hours and weekends) | |
First American Home WarrantyGet Quote |  | $77–$130 | $100–$125 | |
AFC Home WarrantyGet Quote |  | $44–$82 | $75–$125 |
What Is a Home Warranty?
A home warranty, also called a home service contract, provides coverage for repairing or replacing major home systems and appliances that break down due to normal wear and tear. Plans typically last for one year and can help protect homeowners from the unexpected costs of repairs for items such as plumbing, electrical systems, HVAC, and kitchen appliances. Home warranties also help you connect you with pre-vetted technicians when you need a repair, making the process easier and faster.
To use a home warranty, homeowners typically file a claim with their warranty provider when a covered appliance or system malfunctions. You can generally submit claims online, through a customer portal, or by calling the provider’s support line. Once a claim is filed, the home warranty company will assign you a contractor and a scheduled repair appointment. You pay a service fee for each visit, and depending on the plan, you may need to cover additional costs if the repair exceeds your plan’s coverage limits or happens outside regular business hours.
Home Warranty vs. Homeowners Insurance
When comparing home warranties versus homeowners insurance, both provide financial protection for homeowners but cover different types of risks. Homeowners insurance protects your home’s structure and personal belongings from unforeseen incidents such as fires, vandalism, and theft. In contrast, a home warranty covers repairing or replacing major systems and appliances that break down over time due to normal wear and tear. While homeowners insurance addresses damage from catastrophic accidents, a home warranty typically covers issues such as a malfunctioning HVAC system or a worn-out dishwasher.
Although both home warranties and homeowners insurance provide financial protection, they have distinct functions and different legal roles. A home warranty is a service contract with its own rules and regulations, not an insurance policy. While homeowners insurance is typically required by mortgage lenders when purchasing a home, a home warranty is optional. Many homeowners choose to have both types of policies, maximizing coverage for their property.
What Does a Home Warranty Cover?
A home warranty covers the repair or replacement of major systems and appliances in your home that break down due to normal wear and tear. This typically includes major systems such as HVAC, plumbing, and electrical, and home appliances such as refrigerators, dishwashers, and ovens. Home warranty coverage may vary depending on the provider and plan, with some companies offering additional options or add-ons for items such as pools or septic systems.
Many providers offer a range of plans, including appliance-only, system-only, and comprehensive combination options. Our 2025 home warranty survey revealed that 70% of respondents choose comprehensive plans for broader coverage. However, we recommend selecting a plan tailored to your specific needs. Below, we’ve outlined the typical item coverage found in home warranty plans.
Commonly Covered Appliances
- Built-in microwaves
- Ceiling fans
- Clothes washer and dryers
- Dishwashers
- Garbage disposals
- Kitchen refrigerators
- Oven/stove/range/cooktops
Commonly Covered Home Systems
- Air conditioning or cooling system
- Central vacuum
- Electrical system
- Ductwork
- Heating system
- Plumbing stoppages
- Plumbing system
- Water heaters
Common Exclusions
Exclusions refer to anything not covered by a home warranty contract, including items, specific parts, or types of damage. Home warranty contracts often specify the parts excluded from coverage, typically those not essential for the item’s functionality, such as glass, knobs, or paint. Most plans also list items that aren’t covered or only available as optional add-ons, such as roof leaks. Additionally, general exclusions apply to certain types of damage, such as damage from accidents, misuse, or insufficient maintenance, which is consistent across most providers.
Common home warranty coverage exclusions include:
- Cosmetic damage
- Damage from accidents, misuse, or neglect
- Damage from rust, corrosion, or sediment buildup
- Improper installation or modifications
- Nonfunctional items, including knobs, dials, and shelving
- Preexisting conditions (whether known or unknown)
- Structural components, such as foundations and load-bearing walls
- Windows, walls, and doors
If an issue falls under any exclusions listed above, a home warranty provider will deny your claim, leaving you responsible for repair or replacement costs. We recommend carefully reviewing your home warranty contract to verify your coverage to avoid claim denial.
How To Get a Home Warranty Quote
To get a home warranty quote, you can either fill out an online form on a provider’s website or call the customer service team directly. When using the online form, you’ll typically need to provide basic information such as your name, address, and contact details. After submitting your information, you’ll usually receive the quote via email or an online quote tool.
If you choose to get a quote over the phone, a representative will ask for similar information and can provide you with an estimate during the call. Since sample quotes are typically free, we recommend getting at least three estimated rates before buying a home warranty plan.
Is a Home Warranty Worth the Cost?
A home warranty is likely worth the cost if it can help reduce the financial burden of unexpected repairs. While plans come with monthly premiums and service fees, a home warranty may save you money on covered breakdowns, especially for older systems and appliances. Costs vary by provider, coverage level, and home size, so we recommend comparing quotes and reviewing plan exclusions. If the price of a plan is lower than what you might pay for major repairs, a home warranty could save you money in the long run.
What To Consider When Buying a Home Warranty
We recommend taking the following steps when shopping for a home warranty to ensure you pick the best protection for your home:
- Assess your coverage needs: Consider the appliances and systems you need covered. Assess which items in your home could need repairs soon, have preexisting conditions, or are nearing the end of their life spans. If your home has specialty items such as a pool, well pump, or septic tank, check if the company offers add-ons for comprehensive protection.
- Match your coverage needs: Look at each company’s plans, add-on coverage options, and exclusions. We recommend only considering companies offering plans that fit for your home’s unique coverage needs. This way you have a better chance of filing successful claims if you need repairs.
- Obtain free quotes: We recommend requesting at least three sample quotes from reliable home warranty companies. Compare monthly rates, add-on costs, and service call fees.
- Read sample contracts: Review each company’s sample contract before committing to a plan. Carefully read the homeowner obligations, exclusions, and technician policy sections.
How We Rated Home Warranty Companies
Our research involves requesting sample quotes, reviewing contracts and coverage details, and analyzing company policies. We also read customer reviews on platforms such as the Better Business Bureau (BBB) and Trustpilot, reviewed home warranty websites, and contacted customer support teams. To gain firsthand experience, we used online quote tools and signed up for services with 11 top providers.
Using this research, we created a detailed rating methodology to score each provider on six key factors and assign a final 5-star score.
- Coverage: Providers with extensive coverage and higher annual limits scored the highest, while those with long waiting periods or depreciation policies that lower payouts for older items were penalized.
- Cost: This category examines average monthly prices and service call fees. Companies offering pricing at or below the industry average with no hidden fees earned top scores.
- Trustworthiness: We reviewed customer reviews from sources like the Better Business Bureau and Trustpilot, as well as workmanship guarantee length, to gauge reputation. Companies with higher ratings, longer workmanship guarantees, and no ongoing lawsuits earned companies received higher scores.
- Plan Transparency: We evaluated the clarity of each provider’s contract terms, policies, and website disclosures. Companies offering clear and easily understandable contract details scored better.
- Customer Support: This factor looks at the ease of filing claims, response times, and the availability of support. Providers offering multiple claims filing options and responsive customer service were rated higher.
- Flexibility: We considered the variety of plan options, available add-ons, technician selection, and customer-friendly cancellation policies. Providers with more flexible offerings earned higher ratings.
FAQs About Home Warranty Cost
How are home warranties regulated?
Home warranties are generally not federally regulated but may be subject to state-level regulations that focus on business practices and consumer protection. Some states require providers to register with regulatory bodies. Providers may also need to adhere to state insurance laws depending on their coverage types.
Are home warranty plans worth it?
Deciding if a home warranty is worth it depends on your coverage needs and budget. Home warranty plans can offer benefits if you have aging appliances and systems or want to avoid unexpected repair costs. However, the cost might outweigh the benefits if your home is new or in excellent condition.
How much does a home warranty cost per month?
Home warranty plans typically cost between $47–$82 per month, depending on the chosen coverage, provider, home size, and add-ons.
Are you legally required to buy a home warranty?
No, you aren’t legally required to buy a home warranty. It’s an optional service to help manage repair and replacement costs for home appliances and systems.
Related Resources
We’ve compiled several easy-to-digest guides based on our extensive home warranty coverage. Learn more below.
